Toronto-area homes sales hit a 25-year low in 2025.
There were 62,433 sales last year — the last time sales were this low was in 2000 with 60,783 sales, according to the Toronto Regional Real Estate Board’s (TRREB) December report released Wednesday.
“While we’re seeing an improvement in affordability, some households still need to see more relief on the borrowing cost or price of the property,” said Jason Mercer, TRREB’s chief information officer.
“Then we have households that can afford to purchase but are putting that decision on hold, that relates back to uncertainty around the economy.”
Unpredictable trade relationships and a reshaping of geopolitics has put consumers on edge, Mercer said, and it delays large purchases until the economy can settle.
The real-estate market has been turbulent since 2022, after interest rates climbed quickly to help cool inflation.
The sales peak occurred at the height of the pandemic in 2021, with 127,000 sales — more than double last year’s number.
New listings in 2025 increased by 10 per cent, as sales decreased by 11 per cent, indicating buyers firmly remained on the sidelines as more properties came onto the market.
The annual selling price was $1.06 million in 2025 — down 4.7 per cent compared to $1.12 million in 2024.
Some experts forecast that home prices will drop further in 2026, potentially wiping out six years of price gains.
The price declines will pave the way for a “recovery,” the report said, as the cost to buy a home potentially hits pre-pandemic levels. But a lot hinges on consumer confidence, Mercer said.
The average sales price for all property types has dropped by 24.5 per cent since the February 2022 peak. Some economists say a 30-per-cent price drop is a housing crash.
Typically, the winter market is quiet but December was quieter than normal, with sales down almost nine per cent compared to the same time last year.
The average selling price in December was $1 million, down by five per cent compared to December 2024.
In Toronto in December, the 12 per cent year-over-year drop in semi-detached home prices was the largest decline, followed by condos at 7.2 per cent and detached homes at 4.5 per cent.
Townhouses were the only property type that saw price gains with 5.4 per cent increase year over year. But sales for townhomes dropped 22 per cent year over year.
Mercer said it’s important to not read “too heavily” into December and January data which see seasonally lower sales and can result in “volatility” in the data.
But townhomes are typically a more affordable option for condo owners looking to “move up” as they wish to expand their living space.
To see buyers jump into the market again will all stem from improved trade relationships, Mercer said.
“Reaffirmed trade relationships and large-scale domestic economic development projects will be key for improved home sales moving forward,” he said.
“GTA households must be confident in their employment situation before committing to long-term monthly mortgage payments, even in this more affordable market.”
Consumers need to feel they can “weather the storm” and be able to afford their monthly mortgage payments if they decide to move.
“Once we see certainty around trade, a lot of households will move off the sidelines, because there is pent-up demand, and that can happen quite quickly,” Mercer said.
